Dril-Quip Inc (DRQ)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 424,060 | 361,924 | 322,945 | 364,973 | 414,806 |
| Total assets | US$ in thousands | 1,028,180 | 969,951 | 1,009,930 | 1,151,170 | 1,206,560 |
| Total asset turnover | 0.41 | 0.37 | 0.32 | 0.32 | 0.34 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $424,060K ÷ $1,028,180K
= 0.41
Total asset turnover is a financial ratio that measures a company's ability to generate revenue from its total assets. It indicates how efficiently a company is utilizing its assets to generate sales.
The total asset turnover for Dril-Quip, Inc. has shown a fluctuating trend over the past five years. In 2023, the total asset turnover ratio was 0.41, indicating that for every dollar of assets, the company generated $0.41 in revenue. This represents an improvement compared to the previous year, where the ratio was 0.37.
The increase in total asset turnover in 2023 suggests that Dril-Quip has become more efficient in utilizing its assets to generate sales. This could be attributed to better operational efficiency, improved management of inventory, or increased sales volume relative to its asset base.
Overall, a higher total asset turnover ratio is generally favorable as it indicates that the company is effectively leveraging its assets to generate revenue. However, it is essential to consider industry norms and compare the ratio with competitors to gain a more comprehensive understanding of Dril-Quip's efficiency in asset utilization.
Peer comparison
Dec 31, 2023